Blockchain Researcher and Scientist, Dr Daniel Joseph is encouraging persons to engage in proper research and due diligence checks before investing in cryptocurrencies.
Speaking on this week’s episode of ECCB Connects, Dr Joseph shares information on the risks and benefits associated with investing in cryptocurrencies.
He says a key feature of cryptocurrency is the decentralised financial system which allows an individual to move money across borders without the restrictions of a broker or financial regulator.
According to Dr Joseph, some advantages of cryptocurrencies include free and quick movement of funds, as well as easy access to financial services, products and instruments.
He notes, however, that cryptocurrencies are quite volatile and involve a very high risk. Furthermore, the decentralised system on which the currency operates does not allow for any recourse or layer of protection for the investor.
In addition to the popular Bitcoin, Dr Joseph shares examples of other types of popular cryptocurrencies which include Ethereum, Tether, and Ripple; noting that each type affords various offerings depending on the customer’s requirement.
He cautions that, prior to investing in these types of currencies, a person should conduct research.
Dr Joseph goes on to advise that one should not invest more than one is willing to lose as there is no protection or recourse for retrieving lost investments via the platform.